Post Session Commentary - Sep 11 2009

The domestic market today took a turn after upbeat opening, to close with slight gain due to profit booking after rally in past few days. The market was extremely volatile and was constantly hovering between positive and negative terrain on continuous bouts of buying and selling. Benchmark indices overlooked the positive global cues and industrial output data that came as per expectations. India’s industrial production witnessed rise for the 7th straight month, as it grew 6.8% during July 2009, as compared to 6.4% in the corresponding month last year. The BSE Sensex ended above 16,200 level and NSE Nifty closed above 4,800 mark.

The market opened on positive note tracking favorable cues from the global markets. The US markets ended higher for fifth successive session on Thursday. The market touched new 2009 highs after jobless claims slid to the lowest level since July and on encouraging comments from Treasury Secretary Geithner. However, Indian market erased some of gains and suddenly turned volatile after start. Further, stocks continued to trade in range bound manner amid volatility. IIP data for July that grew by 6.8% was unable to bring much respite, as investors booked profits ahead of the weekend after reporting good gains in previous sessions. During the last hour of trading, market managed to gain some ground to end the day marginally above the dotted line. On the sectoral front, most of the buying was seen in Consumer Durable, Bank, PSU, IT and Teck stocks. However, Realty, FMCG, Auto and Oil & Gas stocks were unable to gain favour from the market. BSE Midcap and Smallcap stocks also witnessed selling pressure during the trading.

Among the Sensex pack 20 stocks ended in red territory and 10 in green territory. The market breadth indicating the overall health of the market remained negative as 1717 stocks closed in red while 1070 stocks closed in green and 80 stocks remained unchanged in BSE.

The BSE Sensex closed marginally higher by 47.44 points at 16,264.30 and NSE Nifty ended slightly up by 10.15 points at 4,829.55. BSE Mid Caps and Small Caps closed with losses of 7.89 and 26.92 points at 5,921.61 and 7,101.27 respectively. The BSE Sensex touched intraday high of 16,337.98 and intraday low of 16,130.32.

Gainers from the BSE Sensex pack are Hindalco (5.98%), ICICI Bank (2.47%), SBI (2.10%), L&T Ltd (1.65%), M&M Ltd (1.77%), Wipro Ltd (1.53%), Infosys Tech (1.38%), Bahrti Airtel (1.10%), HDFC (1.05%) and TCS Ltd (0.58%).

Losers from the BSE Sensex pack are Sterlite Industries (2.71%), DLF Ltd (2.47%), HUL (2.33%), Tata Motors (2.26%), ACC Ltd (2.13%), JP Associates (1.96%), RCom (1.68%), Maruti Suzuki (1.56%), Herohonda Motors (1.53%), Grasim Industries (1.18%), Tata Power (0.91%) and ITC Ltd (0.85%).

India’s industrial production witnessed rise for the 7th straight month in July as compared to a year earlier levels but decelerated sequentially. It grew 6.8% during July 2009, as compared to 6.4% in the corresponding month last year. Meanwhile, the industrial production for the month of June was revised from7.8 % to 8.2%. The manufacturing sector rose 6.8% as against 6.9% last year. Mining growth at 9.9% as against 2.8% last year. Capital goods growth at 2% as against 17.9% last year and consumer goods growth at 8.8% as against 5.9%.

On the global markets front, the Asian markets that opened before the Indian market, ended mostly higher. Shanghai Composite, Hang Seng and Seoul Composite closed up by 64.91, 91.86 and 7.02 points at 2,989.79, 21,161.42 and 1,651.7 respectively. However, Nikkei 225 and Singapore''s Straits Times Index lost 69.34 and 0.99 points at 10,444.33 and 2,681.03 respectively.

European markets, which opened after the Indian market, are trading in green. In Paris the CAC 40 is higher by 33.79 points at 3,739.66, in Frankfurt DAX index is trading up by 36.90 points at 5,631.67 and in London FTSE 100 is trading higher 36.91 points at 5,024.59.

The BSE Consumer Durables index advanced (1.79%) or 59.41 points at 3,374.24, as Rajesh Export (5.48%), Gitnajali GE (1.97%), Titan Ind (1.86%), Blue Star L (1.60%) and Videocon Ind (0.62%) closed in positive terrain.

The BSE PSU index closed up by (1.52%) or 127.98 points at 8,575.35. Main gainers are MMTC Ltd (20%), Central Bank (10.16%), Vijaya Bank (6.57%), Allahabad Bank (6.11%) and Dena Bank (5.82%).

The BSE Bank index went up by (1.47%) or 128.8 points at 8,911.44 on hopes that a recovery in the economy will boost lending growth. Gainers are Indus Ind Bank (6.43%), Allahabad Bank (6.11%), Indian Overseas Bank (4.64%), Federal Bank (2.78%) and ICICI Bank (2.47%).

The BSE IT index ended higher by (1.11%) or 48.04 points 4,3268.73. Gainers are Mphasis Ltd (2.40%), Wipro Ltd (1.53%), Infosys Tech (1.38%), HCL Tech (0.99%). and Financ Tech (0.72%).

The BSE Realty index closed lower by (1.63%) or 70.36 points at 4,246.78. Losers are Sobha Dev (3.57%), Penland Ltd (3.37%), DLF Ltd (2.47%), Orbit Co (2.31%) and Ansal Infra (2.20%).

The BSE FMCG index lost (1.18%) or 30.05 points 2,511.95 as Dabur India Ltd (2.50%), HUL (2.33%), Marico Ltd (1.69%), United Brew (1.49%), Tata Tea Ltd (1.28%) and Godrej Cons (1.08%) ended in red.

Omaxe Ltd gained 1.82%, The company will develop a Hi-tech Township in NCR adjoining Greater Noida in Buladshahar, Uttar Pradesh, through its subsidiary. Omaxe''s subsidiary M/s Rivaj Infratech Pvt. Ltd has signed an MoU with Bulandshahar Development Authority for the development of the Hi-Tech Township.

Oracle Financial ended up by 0.61%. TAIB Bank, a leading private investment bank in Bahrain, has implemented Oracle Reveleus Basel II and Oracle Reveleus Asset Liability Management to support its company-wide risk and compliance efforts, Oracle Financial Services Software announced.

Biocon Limited increased by 0.56% after the company signed a pact with US-based Amylin Pharmaceuticals Inc to jointly develop a novel peptide hybird.

Patni Computer Systems Ltd improved 0.59% after a block deal of two lakh shares was executed on NSE at Rs. 404.60 per share.

Amtek Auto Limited closed lower by 6.34%. The company has, on September 11, 2009 priced a proposed Foreign Currency Convertible Bonds ("FCCBs") issuance for an amount of US$65 million with an option to upsize the issue for an additional amount of US$ 110 million.

Sterlite Industries India Ltd shrunk 2.71% after the company raised its open offer price for bankrupt US copper miner Asarco by a fifth to $2.56 billion.

BSE Bulk DEals to Watch - Sep 11 2009

Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
11/9/2009 590006 AMRUTANJAN Naman Securities & Finance Pvt. Ltd. B 21475 490.33
11/9/2009 590006 AMRUTANJAN ANIL KUMAR GOEL S 15000 506.03
11/9/2009 590006 AMRUTANJAN Naman Securities & Finance Pvt. Ltd. S 15341 487.91
11/9/2009 532212 ARCHIES LTD HITESH SHASHIKANT JHAVERI B 45007 109.70
11/9/2009 532212 ARCHIES LTD BP FINTRADE PRIVATE LIMITED B 69349 109.53
11/9/2009 532212 ARCHIES LTD HITESH SHASHIKANT JHAVERI S 45007 109.70
11/9/2009 532212 ARCHIES LTD BP FINTRADE PRIVATE LIMITED S 68347 109.50
11/9/2009 532395 AXIT IT LTD JMP SECURITIES PVT LTD B 152554 59.20
11/9/2009 532395 AXIT IT LTD JMP SECURITIES PVT LTD S 156554 59.25
11/9/2009 530809 BNR UDYOG LT VSL SECURITIES PVT LTD B 20000 13.58
11/9/2009 590076 CAMSON BIO ACCORD CAPITAL MARKETS LTD B 100000 79.20
11/9/2009 590076 CAMSON BIO ALERT FIRE PROTECTION SYSTEM PVT LTD B 62186 79.20
11/9/2009 532413 CEREBRA INT VALUE SOURCE IT PRIVATE LIMITED S 400000 9.25
11/9/2009 531337 CHAN GUIDE I ANIL AGRAWAL HUF S 30000 76.45
11/9/2009 500097 DALMIA CEM B DCBL EMPLOYEES WELFARE TRUST B 450000 191.91
11/9/2009 500097 DALMIA CEM B MONEY MATTERS ADVISORY SERVICES LIMITED S 433020 191.92
11/9/2009 532180 DHANLAK BANK OPG SECURITIES P LTD B 357150 161.45
11/9/2009 532180 DHANLAK BANK OPG SECURITIES P LTD S 357150 161.70
11/9/2009 517973 DMC INTER ASHOK POPATLAL SHAH B 20000 13.65
11/9/2009 517973 DMC INTER J A FINANCIAL AND MANAGEMENT CONSULTANTS PVT LTD B 24827 13.67
11/9/2009 533090 EXCEL INFO JATIN LAXMIKANT TRIVEDI B 587844 65.20
11/9/2009 533090 EXCEL INFO GENUINE STOCK BROKERS PVT. LTD. B 161277 77.10
11/9/2009 533090 EXCEL INFO TRANSGLOBAL SECURITIES LTD. B 206879 73.29
11/9/2009 533090 EXCEL INFO VIJAY CHIMANLAL THAKKAR B 133813 68.12
11/9/2009 533090 EXCEL INFO M/S STANDARD SECURITIES & INVESTMENT INTERMEDIATES LTD. B 134197 66.64
11/9/2009 533090 EXCEL INFO JATIN LAXMIKANT TRIVEDI S 587844 63.71
11/9/2009 533090 EXCEL INFO GENUINE STOCK BROKERS PVT. LTD. S 161277 77.24
11/9/2009 533090 EXCEL INFO TRANSGLOBAL SECURITIES LTD. S 203379 73.40
11/9/2009 533090 EXCEL INFO VIJAY CHIMANLAL THAKKAR S 127851 67.46
11/9/2009 533090 EXCEL INFO M/S STANDARD SECURITIES & INVESTMENT INTERMEDIATES LTD. S 134197 66.28
11/9/2009 532022 FILAT FASH AYODHYAPATI INVESTMENT PVT LTD B 113646 72.30
11/9/2009 532022 FILAT FASH HIMAL KANCHANLAL PARIKH HUF B 55001 71.43
11/9/2009 532022 FILAT FASH AYODHYAPATI INVESTMENT PVT LTD S 104617 72.31
11/9/2009 532022 FILAT FASH ANJANA RAMESHCHANDRA BIRLA S 42506 72.07
11/9/2009 531486 FILMCIT MEDI PRESILCO IMPEX LTD B 1525005 1.15
11/9/2009 531486 FILMCIT MEDI WELLNESS COMMUNICATION (P) LTD S 1530901 1.16
11/9/2009 531863 GEEKAY FINAN RAJESH C R NAIR B 100000 450.85
11/9/2009 531863 GEEKAY FINAN SAMIM SALYA S 154590 450.85
11/9/2009 531439 GOLDSTON TEC PREM MOHANLAL PARIKH B 103000 30.57
11/9/2009 530655 GOOD LUCK ST KINOFOLK INDUSTRIES LTD. B 125781 42.39
11/9/2009 506170 HIRAN ORGOCH ANJAN CHATTERJEE S 56525 11.45
11/9/2009 504336 INDTRADECO L JMP SECURITIES PVT LTD B 994814 0.49
11/9/2009 504336 INDTRADECO L JMP SECURITIES PVT LTD S 1649813 0.49
11/9/2009 504336 INDTRADECO L JIGNESH PRAFUL ROKADIA S 2233432 0.49
11/9/2009 531777 INTELLVIS SO Naman Securities & Finance Pvt. Ltd. B 55026 25.44
11/9/2009 531777 INTELLVIS SO Naman Securities & Finance Pvt. Ltd. S 55023 25.85
11/9/2009 523467 JAI MATA GLA J V STOCK BROKING PRIVATE LIMITED B 20000 8.76
11/9/2009 523467 JAI MATA GLA POONAM BATRA S 25000 8.77
11/9/2009 523467 JAI MATA GLA MOTI LAL BHASIN S 31100 8.76
11/9/2009 505840 JAIPAN INDUS KAILASH CHHAPARWAL S 34470 43.82
11/9/2009 514448 JYOTI RES AD RAJESH SHARMA HUF S 20000 3.27
11/9/2009 522101 KILBURN ENGG* QUEST INV ADVISORS P LTD B 200000 46.45
11/9/2009 503776 MODIPON LTD DAISY INVESTMENT (P) LTD. B 100000 20.00
11/9/2009 503776 MODIPON LTD DHIRENDRA SANGHAVI S 57960 20.00
11/9/2009 532376 MRO-TEK LTD* Naman Securities & Finance Pvt. Ltd. B 169090 40.48
11/9/2009 532376 MRO-TEK LTD* JMP SECURITIES PVT LTD B 108299 42.25
11/9/2009 532376 MRO-TEK LTD* Naman Securities & Finance Pvt. Ltd. S 161149 40.58
11/9/2009 530377 NILA INFRAST MANOJBHAI BHUPATBHAI VADODARIA B 5000000 2.20
11/9/2009 530377 NILA INFRAST PEARL STOCKHOLDINGS PVT LTD S 5000000 2.20
11/9/2009 531996 ODYSSEY CORP VEENA SHIRISH MEHTA B 48500 24.00
11/9/2009 531996 ODYSSEY CORP CHANDAN NAVINCHANDRA MEHTA B 50000 24.53
11/9/2009 531996 ODYSSEY CORP SUVIDHA SECURITIES PVT LTD S 26460 24.00
11/9/2009 532808 PEARL FASHON OPG SECURITIES P LTD B 263238 123.47
11/9/2009 532808 PEARL FASHON OPG SECURITIES P LTD S 263238 123.43
11/9/2009 509839 PUNJAB WOOLC DHARAM ARORA S 77241 5.28
11/9/2009 532826 RAJ TELE TRANSGLOBAL SECURITIES LTD. B 215040 80.61
11/9/2009 532826 RAJ TELE MATRIX EQUITRADE PVT. LTD. B 85979 80.47
11/9/2009 532826 RAJ TELE OPG SECURITIES P LTD B 149440 81.06
11/9/2009 532826 RAJ TELE TRANSGLOBAL SECURITIES LTD. S 214655 80.93
11/9/2009 532826 RAJ TELE MATRIX EQUITRADE PVT. LTD. S 85979 80.60
11/9/2009 532826 RAJ TELE OPG SECURITIES P LTD S 149440 81.16
11/9/2009 511652 RAM KAASHYAP SETU SECURITIES PVT LTD B 40500 16.11
11/9/2009 511652 RAM KAASHYAP V P PATEL S 25000 16.10
11/9/2009 513558 REAL STRIP L GINNI FINANCEPVT.LTD. B 22326 53.03
11/9/2009 533083 RISHABHDEV PATEL NILIMA S 74663 16.45
11/9/2009 506172 SAMPADA CHEM THE PREMIER COMMERCIAL COPVT LTD S 58700 31.40
11/9/2009 531898 SANGUINE MD HITEN BHUPATRAI MEHTA B 152803 3.64
11/9/2009 531898 SANGUINE MD HEMANSHU JADHAV S 77580 3.64
11/9/2009 531898 SANGUINE MD HITEN BHUPATRAI MEHTA S 152803 3.20
11/9/2009 531569 SANJIVA PARA SANJAY AGARWAL HUF B 50000 29.13
11/9/2009 512413 SPECTACLE VIPUL S SHAH B 257859 53.90
11/9/2009 512413 SPECTACLE HEMANT MADHUSUDAN SHETH S 335000 53.79
11/9/2009 500114 TITAN IND. TATA SONS LTD B 810800 1233.40
11/9/2009 500114 TITAN IND. TATA CHEMICALS LIMITED S 810800 1233.40
11/9/2009 507747 TTK HEALTHCA* QUEST INV ADVISORS P LTD B 110000 179.99
11/9/2009 507747 TTK HEALTHCA* EAST SAIL MNGD BY PARI WASHINGTON COMPANY PVT. LTD. S 107905 180.00
11/9/2009 530459 VALSON IND ROHNIL BORADIA B 28140 56.81
11/9/2009 532917 VARUN INDS HITESH SHASHIKANT JHAVERI B 237238 189.96
11/9/2009 532917 VARUN INDS DYNAMIC STOCK BROKING INDIA PVT LTD B 111190 188.56
11/9/2009 532917 VARUN INDS HITESH SHASHIKANT JHAVERI S 258494 189.60
11/9/2009 503657 VEER ENERGY JIGAR SHAH S 400000 25.00
11/9/2009 531874 VENUS VENT EKTA GODARA B 30000 59.50
11/9/2009 531874 VENUS VENT VIPUL HIRALAL SHAH S 50000 59.46
11/9/2009 531874 VENUS VENT KAUSHIK RAJNIKANT MEHTA S 35000 59.38
11/9/2009 532360 VINTAGE CARD GUTTIV RAONRE B 3409 24.00
11/9/2009 524576 VIVID IND EMMA AUTO ANCILLARY PRIVATE LTD S 39217 17.73
11/9/2009 531249 WELL PACK PA PANDYA HARDIK M B 27059 236.34
11/9/2009 531249 WELL PACK PA PANDYA HARDIK M S 26754 236.60

NSE Bulk Deals to Watch - Sep 11 2009

Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
11-SEP-2009,ARCHIES,Archies Limited,AJAY ASSET MANAGEMENT PRIVATE LIMITED,BUY,55856,110.47,-
11-SEP-2009,ARCHIES,Archies Limited,BHAVIN Y MEHTA,BUY,80408,110.02,-
11-SEP-2009,ARCHIES,Archies Limited,BP FINTRADE PRIVATE LIMITED,BUY,55136,110.04,-
11-SEP-2009,ARCHIES,Archies Limited,SETU SECURITIES LTD,BUY,47155,110.53,-
11-SEP-2009,ARCHIES,Archies Limited,VIJIT SHARES AND COMMODITIES PVT.LTD.,BUY,61146,110.52,-
11-SEP-2009,DHANBANK,The Dhanalakshmi Bank Ltd,EDELCAP SECURITIES LTD.,BUY,352000,156.22,-
11-SEP-2009,EXCELINFO,Excel Infoways Limited,CPR CAPITAL SERVICES LTD.,BUY,332363,69.62,-
11-SEP-2009,EXCELINFO,Excel Infoways Limited,JATIN LAXMIKANT TRIVEDI,BUY,576398,68.69,-
11-SEP-2009,EXCELINFO,Excel Infoways Limited,MITHUN SECURITIES PVT. LTD.,BUY,115246,73.00,-
11-SEP-2009,EXCELINFO,Excel Infoways Limited,SHIPRA FRABIC PVT LTD,BUY,120620,71.15,-
11-SEP-2009,EXCELINFO,Excel Infoways Limited,SMART EQUITY BROKERS PRIVATE LIMITED,BUY,132020,73.62,-
11-SEP-2009,EXCELINFO,Excel Infoways Limited,STANDARD SECURITIES & INVESTMENT INTERMEDIATES LIMITED,BUY,122261,66.29,-
11-SEP-2009,EXCELINFO,Excel Infoways Limited,TRANSGLOBAL SECURITIES LTD.,BUY,165840,72.47,-
11-SEP-2009,EXCELINFO,Excel Infoways Limited,VIJAY CHIMANLAL THAKKAR,BUY,123936,67.56,-
11-SEP-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,4271473,57.81,-
11-SEP-2009,LUMAXIND,Lumax Industries Ltd,SETU SECURITIES LTD,BUY,54350,201.59,-
11-SEP-2009,MRO-TEK,MRO-TEK Limited,ADELIA THERESA RODRIGUES,BUY,94802,40.53,-
11-SEP-2009,MRO-TEK,MRO-TEK Limited,AJAY ASSET MANAGEMENT PRIVATE LIMITED,BUY,127028,41.80,-
11-SEP-2009,MRO-TEK,MRO-TEK Limited,NAMAN SECURITIES & FINANCE PVT. LTD,BUY,133666,40.70,-
11-SEP-2009,OUDHSUG,The Oudh Sugar Mills Ltd,UTTAR PRADESH TRADING CO LTD,BUY,125800,76.28,-
11-SEP-2009,RAJTV,Raj Television Network Li,NIKON FINLEASE PVT. LTD,BUY,70043,80.64,-
11-SEP-2009,RAJTV,Raj Television Network Li,OM INVESTMENTS,BUY,222328,80.19,-
11-SEP-2009,RAJTV,Raj Television Network Li,TRANSGLOBAL SECURITIES LTD.,BUY,187415,80.95,-
11-SEP-2009,SRTRANSFIN,Shriram Trans Fin Co. Ltd,SLOANE ROBINSON LLP (SLOANE CLASS B ASIA),BUY,1639461,374.99,-
11-SEP-2009,SRTRANSFIN,Shriram Trans Fin Co. Ltd,SLOANE ROBINSON LLP (SLOANE S R GLO F EMER),BUY,2121985,374.99,-
11-SEP-2009,VARUN,Varun Industries Limited,SETU SECURITIES LTD,BUY,145211,188.47,-
11-SEP-2009,ARCHIES,Archies Limited,AJAY ASSET MANAGEMENT PRIVATE LIMITED,SELL,45092,110.14,-
11-SEP-2009,ARCHIES,Archies Limited,BHAVIN Y MEHTA,SELL,80408,110.48,-
11-SEP-2009,ARCHIES,Archies Limited,BP FINTRADE PRIVATE LIMITED,SELL,49146,109.62,-
11-SEP-2009,ARCHIES,Archies Limited,SETU SECURITIES LTD,SELL,44727,110.39,-
11-SEP-2009,ARCHIES,Archies Limited,VIJIT SHARES AND COMMODITIES PVT.LTD.,SELL,43146,110.55,-
11-SEP-2009,EXCELINFO,Excel Infoways Limited,CPR CAPITAL SERVICES LTD.,SELL,332363,69.63,-
11-SEP-2009,EXCELINFO,Excel Infoways Limited,JATIN LAXMIKANT TRIVEDI,SELL,576398,63.11,-
11-SEP-2009,EXCELINFO,Excel Infoways Limited,MITHUN SECURITIES PVT. LTD.,SELL,115246,72.94,-
11-SEP-2009,EXCELINFO,Excel Infoways Limited,SHIPRA FRABIC PVT LTD,SELL,120620,66.71,-
11-SEP-2009,EXCELINFO,Excel Infoways Limited,SMART EQUITY BROKERS PRIVATE LIMITED,SELL,132020,73.70,-
11-SEP-2009,EXCELINFO,Excel Infoways Limited,STANDARD SECURITIES & INVESTMENT INTERMEDIATES LIMITED,SELL,122261,66.79,-
11-SEP-2009,EXCELINFO,Excel Infoways Limited,TRANSGLOBAL SECURITIES LTD.,SELL,167340,72.48,-
11-SEP-2009,EXCELINFO,Excel Infoways Limited,VIJAY CHIMANLAL THAKKAR,SELL,129898,68.49,-
11-SEP-2009,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,4255713,57.76,-
11-SEP-2009,LUMAXIND,Lumax Industries Ltd,SETU SECURITIES LTD,SELL,18638,193.74,-
11-SEP-2009,MRO-TEK,MRO-TEK Limited,ADELIA THERESA RODRIGUES,SELL,100302,39.67,-
11-SEP-2009,MRO-TEK,MRO-TEK Limited,AJAY ASSET MANAGEMENT PRIVATE LIMITED,SELL,74528,40.91,-
11-SEP-2009,MRO-TEK,MRO-TEK Limited,NAMAN SECURITIES & FINANCE PVT. LTD,SELL,126447,40.55,-
11-SEP-2009,OUDHSUG,The Oudh Sugar Mills Ltd,NEW INDIA RETAILING & INVESTMENT LIMITED,SELL,125000,76.28,-
11-SEP-2009,RAJTV,Raj Television Network Li,NIKON FINLEASE PVT. LTD,SELL,70043,80.53,-
11-SEP-2009,RAJTV,Raj Television Network Li,OM INVESTMENTS,SELL,222328,80.28,-
11-SEP-2009,RAJTV,Raj Television Network Li,TRANSGLOBAL SECURITIES LTD.,SELL,186415,80.72,-
11-SEP-2009,SKUMARSYNF,S. Kumars Nationwide Ltd,CITIGROUP GLOBAL MARKET MAURITIUS PVT.LTD.,SELL,1500000,49.01,-
11-SEP-2009,SRTRANSFIN,Shriram Trans Fin Co. Ltd,UNO INVESTMENTS,SELL,5792479,375.00,-
11-SEP-2009,VARUN,Varun Industries Limited,SETU SECURITIES LTD,SELL,173812,188.67,-

Global stocks, foreign fund flows to dictate trend

Key benchmark indices are likely to see a consolidation in the forthcoming week in absence of any major near term trigger. Profit booking may emerge after the recent rally on the bourses, which propelled the key benchmark indices to a 15-months high. Besides movements in global markets, foreign funds activity and progress of India's monsoon may continue to influence sentiment on the domestic bourses.

Indices have been on a roll recently following the revival in India's monsoon and firm global stocks. The BSE 30-share Sensex gained 3.67% in the week ended Friday, 11 September 2009 to 15,689.12, its highest closing since 30 May 2008. The S&P CNX Nifty rose 3.18% to 4829.55, its highest closing since 30 May 2008.

Meanwhile, the revival in monsoon has lifted sentiment. Rainfall was 21% above average in the week to 9 September 2009 continuing the upturn since mid-August, the India Meteorological Department said on 10 September 2009. The deficit for the June- September season narrowed to 20% from 23% a week earlier, the weather bureau said.

More than two-thirds of the people live in villages and 60 % of the farm land depends on the annual rains. Higher rainfall in the past week has helped India's 81 biggest reservoirs fill up much faster than normal for this time of year. Reservoirs are important for hydropower, which accounts for a quarter of India's generation capacity. They also provide water to irrigate winter crops.

Markets have risen sharply this year on increased global risk appetite triggered by hopes of a recovery in the global economy after a setback from a financial sector crisis. The Sensex is up 6616.99 points or 68.58% in calendar year 2009 as on 11 September 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 8103.90 points or 99.30% as on 11 September 2009.

Foreign funds have been the key drivers of the recent rally. Their inflow in August 2009 totaled Rs 2,172.10 crore (till 10 September 2009). Their inflow in calendar year 2009 totaled Rs 42,370.60 crore.

Industrial growth rose for a seventh straight month in July 2009 over the previous year on higher government spending and lower borrowing costs, government data showed on 11 September 2009. However growth rose at a slower pace in July as compared with the previous month, indicating a slowdown.

India's index of industrial production (IIP) rose 6.8% in July 2009 from a year earlier, slower than the revised June's increase to 8.2%. India's economy had risen at a 6.9% pace in July 2008.

With economy getting back on track, the government expects GDP growth to accelerate to over 8% in 2010-11 boosted by the stimulus packages. The finance minister expects economy to expand more than 6% in the current fiscal despite scanty monsoon. This has given rise to fears of monetary tightening.

The Reserve Bank of India (RBI) had on 28 July 2009 left the reverse-repo rate unchanged at 3.25% and kept the repo rate at 4.75%. Earlier, the central bank had cut interest rates six times from October 2008 to April 2009 to boost the sagging economy. Industrial growth had dipped to 6.7% in 2008-09 after over 9% growth in the previous three years with the global economic meltdown casting its shadow on the economy

The wholesale price index (WPI) fell 0.12% in the year through 29 August 2009, lower than an annual decline of 0.21% in the previous week, data released by the government showed on 10 September 2009.

Economists expect inflation to rise to 5 to 6% by the end of the fiscal year March 2010 on the back of rise in commodity prices and revival in demand, above the central bank's projection of 5%.

India's finance minister Pranab Mukherjee on 7 September 2009 said that a growth is likely in the second and third quarter of the current fiscal due to fall in agricultural growth. He was a little doubtful of the 6.1% expansion achieved during the first quarter of this fiscal. The economy will not grow at the pace it did in April-June period, but that does not warrant a downward revision of growth forecast.

Global markets have been on a buoyant note with the US markets hitting fresh 2009 highs in intra-day trade on 10 September 2009 after the US Federal Reserve's latest survey of businesses in US found economic activity stabilizing or improving in most regions.

Emerging stocks hit fresh one-year highs on 11 September 2009 with buoyant Chinese economic data adding to optimism generated by G20 governments' pledges to keep monetary policy accommodative.

Sensex gains 5.62% in last six days

The key benchmark indices extended gains for the sixth straight day on positive global stocks and industrial output data which came in as expected. The BSE 30-share Sensex rose 47.44 points or 0.29%, off close to 100 points from the day's high and up close to 135 points from the day's low. Realty, auto and FMCG stocks fell. Banking and IT stocks rose. Index heavyweight Reliance Industries recovered in volatile trade. The market breadth was weak.

The market was volatile. It pared gains after firm start triggered by strong global cues. Market later hovered between positive and negative terrain but closed in the green. The similar trend was witnessed on Thursday.

India's industrial output data for the month of July 2009 showed growth of 6.8% compared with 6.9% growth in the same month last year data showed at 12:00 IST today. The industrial output for the month of June 2009 revised higher to 8.2%.

The Indian economy is unlikely to revert to its trend growth rate soon as recession in advanced economies would eat into global growth and world trade, Reserve Bank of India (RBI) deputy governor Usha Thorat said on Friday.

India's industrial growth will continue to show rising momentum, Finance Secretary Ashok Chawla said today.

The weather office said on Thursday rainfall was 21 % above average in the week to 9 September 2009 continuing the upturn since mid-August but total seasonal rainfall was a fifth short of normal since the season began with the driest June in eight decades. More than two-thirds of the people live in villages and 60 % of the farm land depends on the annual rains.Higher rainfall in the past week has helped India's 81 biggest reservoirs fill up much faster than normal for this time of year. Reservoirs are important for hydropower, which accounts for a quarter of India's generation capacity. They also provide water to irrigate winter crops.

The wholesale price index (WPI) fell 0.12% in the year through 29 August 2009, lower than an annual decline of 0.21% in the previous week, data released by the government showed on Thursday. The food article index surged 14.8%.

Analysts are concerned that a sharp surge in food prices in the past few days due to scanty rains may stoke inflationary pressures in the economy. Interest rates could rise on higher inflation which in turn may impact a nascent economic recovery and corporate profits.

Meanwhile, foreign direct investment (FDI) flows into India in July 2009 were up 56 % from the same month in 2008. FDI flows into India were $3.5 billion in July, up from $2.25 billion a year earlier, Trade Minister Anand Sharma said on Thursday.

Liquidity continues to support share prices and oversubscription to the Oil India initial public offering is a testimony to that. The Oil India IPO which opened for bidding on 7 September 2009, was subscribed 30.82 times. The issue was closed on 10 September 2009. The government has fixed Rs 950-1,050 per share price band for the initial public offering of Oil India (OIL), the second state-run firm to hit the market this year after NHPC, and will raise up to Rs 2,777 crore.

The strong response to Oil India IPO was despite a muted debut of another state-run firm NHPC on the secondary markets early this month.

European equities advanced for a sixth straight session to hit a new 11-month high on Friday, with financial shares extending recent gains and energy stocks following stronger crude oil prices. The key benchmark indices in France, Germany and UK were up by between 0.55% to 0.75%.

Asian shares edged up on Friday as strong Chinese economic data supported regional recovery hopes. The key benchmark indices in Hong Kong, South Korea, Taiwan rose by between 0.07% to 0.44%.

China's Shanghai Composite rose 2.22%. China's industrial production grew at a faster pace in August, signaling a strengthening recovery in the world's third-biggest economy. Output gained 12.3 % from a year earlier, after climbing 10.8 % in July, the statistics bureau said in Beijing today

But, Japan's Nikkei fell 0.66%. Japan's economy unexpectedly grew less than initially estimated in the second quarter. Gross domestic product expanded at an annual 2.3 % pace in the three months ended 30 June 2009, slower than the 3.7 % reported as per preliminary estimate, the Cabinet Office said today in Tokyo.

Trading in US index futures indicated Dow could open flat at the opening bell today, 11 September 2009.

The US markets touched fresh 2009 highs on Thursday, 10 September 2009 after jobless claims slid to the lowest level since July. The Dow added 80.26 points, or 0.8%, to 9,627.48. The S&P 500 index rose 10.77 points, or 1%, to 1,044.14. The Nasdaq Composite Index rose 23.63 points, or 1.2%, to 2,084.02.

From the economic data front initial claims for unemployment fell more than expected to 5,50,000 last week while continuing claims also dropped more than estimates to 6.09 million. Meanwhile, trade deficit expanded for the second straight month to a greater-than-expected $ 32 billion in July 2009.

The BSE 30-share Sensex rose 47.44 points or 0.29% to 16,264.30. The Sensex rose 121.12 points the day's high of 16,337.98 in early trade. The barometer index fell 86.54 points at the day's low of 16,130.32 in late trade.

The S&P CNX Nifty rose 10.15 points or 0.21% to 4829.55. Nifty September 2009 futures were at 4847.60 at a premium of 18.05 points as compared to the spot closing of 4829.55. Turnover in NSE's futures & options (F&O) segment was Rs 61,648.13 crore, much lower than Rs 75,583.39 crore on Thursday, 10 September 2009.

BSE clocked a turnover of Rs 5678 crore lower than Rs 6720.80 crore on Thursday, 10 September 2009.

The market breadth indicating the overall health of the market, turned weak from strong breadth in early trade. On BSE, 1069 shares rose as compared with 1713 that declined. A total of 80 shares remained unchanged.

Among the 30-member Sensex pack, 10 rose while the rest declined.

The Sensex has jumped 865.97 points or 5.62% in six trading days to 16,264.30 on 11 September 2009 from a recent low of 15,398.33 on 3 September 2009 as a revival of monsoon rains, strong response to the initial public offer of Oil India and firm global stocks boosted sentiments.

Stocks have risen sharply this year on increased global risk appetite triggered by hopes of a recovery in the global economy after a setback from a financial sector crisis. The Sensex is up 6616.99 points or 68.58% in calendar year 2009 as on 11 September 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 8103.90 points or 99.3% as on 11 September 2009. FII inflow in calendar year 2009 totaled Rs 42,370.60 crore (till 10 September 2009).

Coming back to today's trade, the BSE Mid-Cap index fell 0.13% and the BSE Small-Cap index fell 0.38%. Both the indices underperformed Sensex.

The BSE Consumer Durables index (up 1.79%), the BSE PSU index (up 1.52%), the BSE Bankex (up 1.47%), the BSE IT index (up 1.11%), the BSE Teck index (up 0.68%), the BSE Capital Goods index (up 0.6%), outperformed the Sensex.

The BSE Realty index (down 1.63%), the BSE FMCG index (down 1.18%), the BSE Oil & Gas index (down 0.71%), the BSE Auto index (down 0.6%), the BSE Metal index (down 0.38%), the BSE Power index (down 0.31%), the BSE Healthcare index (don 0.26%), underperformed the Sensex.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 0.38% to Rs 2140.95 on profit taking after recent surge. The stock came off the day's high of Rs 2170. Anil Ambani group firm Reliance Natural Resources (RNRL) on Wednesday told the Supreme Court that the government has no role to play either in the utilisation or the fixation of gas price as per its contract with Mukesh-led RIL.

The two sides RIL and RNRL had approached Supreme Court challenging a decision by the Bombay High Court on 15 June 2009, which said RIL should provide 28 million cubic metres of gas per day to RNRL at $ 2.34 per mmBtu and both the parties should sign a necessary agreement for the same within a month. RIL, however, is pleading that it was only a contractor for the gas from the Krishna-Godavari basin's D6 block and did not have the power to fix the price, while the government has also moved a special leave petition in the case asserting its right on pricing and distribution of natural gas. The apex court has decided to commence hearing on this matter on 20 October.

A rally in crude oil failed to lift oil exploration counters. India's biggest state-run oil exploration firm by revenue Oil & Natural Gas Corporation (ONGC) fell 0.35%. Cairn India fell 0.19%. Rise in crude oil prices would result in higher realizations from crude sales for oil exploration firms.

Crude oil was flat after early gains as industrial production in China, the world's second-biggest energy user, grew at a faster pace than forecast. Crude oil for October delivery was flat at $ 71.91 a barrel on the New York Mercantile Exchange.

IT stocks rose on hopes of faster recovery in US economy. US is the biggest market for Indian IT companies. India's second largest software services exporter by sales Infosys rose 1.38% as its ADR rose 0.77% on Thursday, 10 September 2009. India's third largest software services exporter by sales Wipro rose 1.53% even on 0.3% fall in its ADR on 10 September 2009.

India's largest software services exporter by sales Tata Consultancy Services rose 0.58%. TCS's Chief Executive S. Ramadorai on 7 September 2009 said TCS is seeing stability on the ground and the company's demand pipeline is good.

Realty stocks fell on profit taking after recent surge. DLF, Unitech, , Indiabulls Real Estate, Ackruti City fell by between 1.07% to 2.47%.

The stocks surged recently triggered by reports prices of residential units in key regions like New Delhi-NCR (National Capital Region) and Mumbai have risen 10-15% on gradual return of residential property buyers.

The demand for residential projects in major cities is picking up on lower home loan rates, property price cuts by developers and a recovery in the job market. Realty market had slumped last year amid a global credit crunch and buyers fearing job losses.

India's largest copper maker by sales Sterlite Industries fell 2.71% after company on Friday said it had raised its open offer price for bankrupt U.S. copper miner Asarco by a fifth to $2.565 billion.Sterlite, a unit of India-focused mining company Vedanta Resources, has been facing off with Mexican miner Grupo Mexico for the assets of Asarco, which has been under bankruptcy protection since 2005.The stock was the major loser from the Sensex pack.

But other metal stocks rose hopes of strong domestic demand. Hindalco Industries, National Aluminum Company, Hindustan Zinc, Steel Authority of India rose by between 0.11% to 5.98%.

Some FMCG pivotals fell on concerns over scanty rains so far this year. FMCG firms derive substantial revenue from the rural sector . Marico , REI Agro, Dabur India, Tata Tea, Nestle India, ITC, Hindustan Unilever fell by between 0.37% to 3.18%.

Auto stocks fell on profit taking. India's top small car maker by sales Maruti Suzuki fell 1.56%.

Two-wheeler makers were mixed. India's largest bike maker by sales Hero Honda Motors fell 1.53%. India's second largest bike maker by sales Bajaj Auto rose 3.21%.

India's largest truck maker by sales Tata Motors fell 2.26%.

India's largest tractor maker by sales Mahindra & Mahindra fell 0.21%. The president of company's two-wheeler business Anoop Mathur said on Thursday, 10 September 2009 at the launch of two new scooters that Mahindra & Mahindra (M&M) expects to sell 100,000 two-wheelers in the next 18 months, Mahindra entered the two-wheeler segment with the acquisition of Kinetic Motor last year.

Seperately, some reports suggested that M&M is considering a greenfield expansion to ramp up its production capacity for two-wheelers. It is looking at tax-free states such as Himachal Pradesh and Uttarakhand.

Car sales rose 26% to 120,669 units in August 2009 over August 2008 boosted by new launches and availability of cheaper loans, data released by the industry body Society of Indian Automobile Manufacturers on 8 September 2009, showed. Sales of trucks and buses rose 18.5% to 40,624 units and motorcycle sales rose 26% to 611,173 units.

Banking shares rose on hopes a recovery in the economy will boost lending growth. India's largest private sector bank by net profit ICICI Bank rose 2.47%. The bank's managing director Chanda Kochhar said on 8 September 2009 credit growth in India is likely to pick up in the second half of this year.

India's largest bank by net profit and branch network State Bank of India rose 2.1%. Chairman O.P. Bhatt on 8 September 2009 said the bank's earnings are likely to grow 30-35% in the current quarter. SBI's retail loan growth is likely to be twice of what it was in the year-ago quarter, he said.

India's second largest private sector bank by net profit HDFC Bank rose 0.58%.

India's largest engineering and construction firm by sales Larsen & Toubro rose 1.65% after company on Thursday during market hours said it got orders worth Rs 405 crore

But other capital goods stocks fell. Praj Industries, Crompton Greaves, Siemens, Thermax, Bhel Authority of India fell by between 0.29% to 1.82%.

Construction shares fell on profit taking. IVRCL Infrastructures & Projects, Jaiprakash Associates, Gayatri Projects and Hindustan Construction Company fell by between 1.09% to 3.47%.

Higher government spending on infrastructure sector in 2009-2010 to provide a stimulus to the economy, may result in increase order flow for construction firms.

India's largest thermal power generator by sales NTPC fell 0.17% after company's chairman said late on Thursday India's government may sell up to 5% in power producer NTPC before March 2009.

Other power stocks, Reliance Infrastructure, Torrent Power, Tata Power Company, Reliance Power fell by between 0.08% to 1.12%.

Cement stocks extended Thursday's fall on reports cement makers have cut prices by Rs 3 per 50 kilogram bag in Mumbai. ACC, Grasim Industries, Ultratech Cement fell by between 0.91% to 2.13%.

Tea stocks fell on profit taking after recent gain triggered by jump in prices on the back of fall in production.

McLeod Russel, Assam Tea & Exports, Harrison Malayalam, Assam Company fell by between 0.96% to 4.41%.

Tea production in India fell by 3% to 127 million kilogram (kg) in July 2009 over July 2008 on a decline in output mainly in West Bengal, though higher realisation pushed up exports marginally, according to the Tea Board.

Sugar stocks fell on recent reports the Indian government has asked tax authorities to monitor the release of sugar stocks by mills to ensure steady prices and supplies in the festival season when demand peaks.

Shree Renuka Sugars, Balrampur Chini, Bajaj Hindustan fell by between 0.25% to 1.94%.

Cals Refineries clocked the highest volume of 9.9 crore shares on BSE. Reliance Natural Resources (1.57 crore shares), IFCI (1.54 crore shares), Suzlon Energy (1.29 crore shares) and NHPC (1.19 crore shares) were the other volume toppers in that order.

DLF clocked the highest turnover of Rs 201.02 crore on BSE. Reliance Industries (Rs 174.77 crore), Housing Development & Infrastructure (Rs 141.57 crore), Reliance Natural Resources (138.73 crore) and ICICI Bank (Rs 135.25 crore) were the other turnover toppers in that order.

Indices hit 15-month high

An improvement in business confidence of India Inc and revival of monsoon rains helped the key benchmark indices hit a 15-month high last week. Firm global stocks and foreign fund buying aided the rally.

A survey to gauge business confidence sentiment, carried out by Federation of Indian Chambers of Commerce and Industry (Ficci), for the month of September 2009, suggested that the confidence level of India Inc is on the rise thanks to government's fiscal stimulus measures. Eighty per cent of the companies believe that the Indian economy is on the road to recovery and expect improvement in corporate performance in the months to come.

Although, the future outlook for the Indian industry as a whole is fairly positive, 86% of the companies expressed concern over delayed monsoons. The respondents feel this can have an adverse impact on demand for industrial goods in the coming months.

Incidentally, there has been a revival in monsoon rains in the past few days. After playing truant for most of the season, the monsoon has picked up pace in the past few days thereby reducing the deficiency in cumulative rainfall in this season. The cumulative rainfall was 23% below normal in the week ended 2 September 2009, an improvement from 25% in the week ended 26 August 2009 and 29% in the week ended 12 August 2009, the India Meteorological Department said on 4 September 2009.

However, a cause of concern is that reservoir levels in key reservoirs are at two-thirds of the 10-year average, and 60% of last year's levels. Because of the deficient rainfall between June and September, good water storage level in these key reservoirs, which makes up one-third of the country's total water storage, are crucial to a good winter crop. Two-third of India's population lives in villages and 60% of the farm land depends on the annual rains.

A Japanese brokerage firm in a research note said India's economic growth could slow to 6% in 2009-10 from its earlier estimate of 6.3%, dragged by contraction in agricultural growth. The brokerage cut its 2009-10 agriculture gross domestic product (GDP) growth forecast to 2.2% from 3.5% due to deficient monsoon rains.

An Australian based brokerage has lowered India's economic growth target to 6.5% in the year ending March 2010 from the 7% forecast earlier, as weak monsoon rainfall affects the agriculture sector. However the brokerage firm raised its estimate for gross domestic product expansion for the following year to 8% from 7.5%.

FII inflow in September 2009 totaled Rs 2,172.10 crore (till 10 September 2009). Foreign funds had bought equities worth Rs 4028.80 crore in August 2009. FII inflow in calendar year 2009 totaled Rs 42,370.60 crore (till 10 September 2009).

The wholesale price index (WPI) fell for the 13th successive week though the drop was lower at 0.12% for the week ended August 29 against 0.21% decline in the week before, data on Thursday, 10 September 2009, showed.

The Index of Industrial Production (IIP) number for July 2009 was at 6.8% versus 8.2% in June 2009 and 6.4% in July 2008. The June IIP figure, which was first reported at 7.8%, has been revised to 8.2%.

The BSE 30-share Sensex rose 575.18 points or 3.67% to 16,264.30 in the week ended Friday, 11 September 2009. The S&P CNX Nifty rose 149.15 points or 3.18% to 4829.55 in the week.

The BSE Mid-Cap index rose 88.39 points or 1.52% to 5,921.61. The BSE Small-Cap index 109.76 points or 1.57% to 7,101.27. Both the indices underperformed Sensex.

Strong response to the initial public offer of Oil India, an improvement in business confidence of India Inc and revival of monsoon rains helped key benchmark indices end on a positive note on Monday, 7 September 2009. The BSE 30-share Sensex jumped 327.20 points or 2.09% to 16,016.32. The S&P CNX Nifty rose 102.50 points or 2.19% to 4,782.90.

The initial public offer (IPO) of state-run Oil India ended with oversubscription of 30.82 times. The IPO received bids for 81.52 crore shares compared to the issue size of 2.64 crore shares. The IPO opened for bidding on 7 September 2009 and closed on 10 September 2009.

Key benchmark indices extended gains for the third straight session on Tuesday, 8 September 2009, led by rally in index heavyweights Reliance Industries and State Bank of India. The BSE 30-share Sensex rose 107.35 points or 0.67% to 16,123.67. The S&P CNX Nifty rose 22.35 points or 0.47% to 4805.25.

Key benchmark indices extended gains for the fourth straight session on Wednesday, 9 September 2009, on a revival in monsoon and after a recent survey showed an improvement in business confidence of India Inc. The BSE 30-share Sensex was up 59.88 points or 0.37% to 16,183.55. The S&P CNX Nifty was up 9 points or 0.19% to 4814.25.

The key benchmark indices registered small gains in choppy trade on Thursday, 10 September 2009, extending a rally for the fifth day. The market retraced afterweak European markets and lower US index futures triggered profit taking. The BSE 30-share Sensex rose 33.31 points or 0.21% to 16,216.86. The S&P CNX Nifty rose 5.15 points or 0.11% to 4819.40.

The key benchmark indices extended gains for the sixth straight day on Friday, 11 September 2009, on positive global stocks and industrial output data which came in as expected. The BSE 30-share Sensex rose 47.44 points or 0.29% to 16,264.30. The S&P CNX Nifty rose 10.15 points or 0.21% to 4829.55.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) rose 8.08% to Rs 2140.95 in the week. Anil Ambani group firm Reliance Natural Resources (RNRL) on Wednesday told the Supreme Court that the government has no role to play either in the utilisation or the fixation of gas price as per its contract with Mukesh-led RIL.

The two sides RIL and RNRL had approached Supreme Court challenging a decision by the Bombay High Court on 15 June 2009, which said RIL should provide 28 million cubic metres of gas per day to RNRL at $ 2.34 per mmBtu and both the parties should sign a necessary agreement for the same within a month. RIL, however, is pleading that it was only a contractor for the gas from the Krishna-Godavari basin's D6 block and did not have the power to fix the price, while the government has also moved a special leave petition in the case asserting its right on pricing and distribution of natural gas. The apex court has decided to commence hearing on this matter on 20 October.

Shares of software outsourcers rose after a Japanese brokerage raised its rating on the sector to ‘neutral' from ‘bearish' given positive growth prospects in the US and Europe, an improvement in IT spending and expanding operating margins.

India's fourth largest software services exporter by sales HCL Technologies rose 2.60%. India's second largest software services exporter by sales Infosys rose 2.98%. India's largest software services exporter by sales Tata Consultancy Services (TCS) rose 5.25%. However, India's third largest software services exporter by sales Wipro was unchanged.

India's largest copper maker by sales Sterlite Industries rose 11.25%. The company on Friday, 11 September 2009, said it had raised its open offer price for bankrupt US copper miner Asarco by a fifth to $2.565 billion. Sterlite, a unit of India-focused mining company Vedanta Resources, has been facing off with Mexican miner Grupo Mexico for the assets of Asarco, which has been under bankruptcy protection since 2005.

Steel stocks were in demand last week after Steel Minister Virbhadra Singh said on Thursday, 10 September 2009, domestic consumption of steel could rise 6% this quarter.

World's largest steel maker by capacity Tata Steel rose 9.07%. Steel Authority of India (up 2.74%), JSW Steel (up 6%), Jindal Steel & Power (up 2.81%), and Bhushan Steel (up 8.62%), rose.

Domestic steel makers recently raised prices of flat steel products such as plates and sheets, mainly used in manufacturing automobiles, refrigerators and washing machines, by about 3-5% from Tuesday, 1 September 2009, in line with international prices.

Tata Steel and Steel Authority of India have raised prices of flat products by Rs 1,500 a tonne.

Prices of long steel products used in construction and infrastructure sector, however, were left unchanged.

Bank stocks advanced after shares of ICICI Bank, HDFC Bank were upgraded by a foreign brokerage.

India's largest private sector bank by market capitalisation ICICI Bank rose 12.32% after it was raised to 'overweight' from 'underweight'.

India's second largest private sector bank by market capitalisation HDFC Bank 2.51% after it was lifted to 'overweight' from 'neutral.'

The brokerage said HDFC Bank and ICICI Bank, offered potential total returns of 25% over the next three years.

India's largest commercial bank by branch network State Bank of India (SBI) rose 8.78%. SBI chairman O P Bhatt, on 8 September 2009, said the bank's earnings are likely to grow 30-35% in Q2 September 2009 over Q2 September 2008. SBI's retail loan growth in Q2 September 2009 is likely to be twice of what it was in Q2 September 2008, he added.

Market may open positive

The benchmark indices, Sensex and Nifty, are expected to commence on a firm note and witness significant rally during intra-day trades, as international markets backed by firm US and mixed Asian indices may help the sentiment remain buoyant. On the technical front, the Nifty could test in the 4850-4902 range on the upside and has supports in the 4750-4690 range, while the Sensex has a likely support at 16024 and may face resistance at 16208.

US indices surged Thursday, with the major gauges ending at the highest point in nearly a year, having responded strongly to a debt auction and Procter & Gamble's improved forecast. As a result, the Dow Jones flared up by 80 points at 9,627, while the Nasdaq added 24 points to close at 2084.

Indian ADRs traded mix on the US bourses. Patni Computers, Satyam & MTNL lost 2-3% while Wipro and VSNL declined marginally. However, Dr Reddy, ICICI Bank, Infosys, Tata Motors, HDFC Bank and Rediff ended with marginal gains.

Crude oil prices in the US market surged, with the Nymex light crude oil for October delivery gained 63 cents at $71.94. In the commodity segment, the Comex gold for December series lost 30 cents to settle at $996.80 a troy ounce.

Daily trend of FII/MF investment in equities
On September 09 2009, FIIs were net buyers of stocks to the tune of Rs247 crore (purchases worth Rs3101 crore and sales of Rs2854 crore) while domestic mutual funds were net buyers of stocks to the tune of Rs48 crore (purchases worth Rs1069 crore and sales of Rs1021 crore).

Stocks With +ve bias: Sterlite Industries, BHEL,
Stocks with -ve bias: Aban
Stocks For Investments: Mahindra Lifespace, United Phosperous, and Philips Carbon

Data to be announced today
India - IIP Data (%) (July)
US - Wholesale Inventories (%)
US - U.Michigan Confidence

Pre Session Commentary - Sep 11 2009

Today domestic markets are likely to open negative as there are mixed cues from majority of Asian markets. The overnight surge in US markets on the back of better jobless claims data has given some confidence to other markets. However as the domestic markets are already at its 2009 peak levels, any upward movement from here is apprehensive. During the day trading is likely to be range bound.

On Thursday, markets closed on flat note after showing a strong rally at the initial stage, on the back of far end profit booking across the selective indices. Instability was led by bouts buying and selling that was witnessed in key stocks. Market pared most of its gains during last hours and stocks touched the red zone during final trading on some profit booking led by recent rally in stocks. However, stocks were trading with good gain till before afternoon trade tracking upbeat sentiment from global markets. Meanwhile, inflation for the week ended 29th Aug 2009, came in at -0.12% as compared to -0.21% in the previous week. The BSE Sensex ended above 16,150 level and NSE Nifty closed above 4,800 mark.

The BSE Sensex closed marginally higher by 133.31 points at 16,216.86 and NSE Nifty ended slightly up by 5.15 points at 4,819.40. BSE Mid Caps and Small Caps closed with losses of 10.31 and 55.19 points at 5,929.50 and 7,128.19 respectively. The BSE Sensex touched intraday high of 16,434.77 and intraday low of 16,166.42.
On Thursday, US markets closed positive. The buying momentum helped stocks close higher again. There was latest Treasury auction and comments from Treasury Secretary Geithner to lift stocks to fresh highs for 2009. News that the latest batch of initial jobless claims and continuing claims fell more than expected to 550,000 and 6.09 million, respectively, and that the trade deficit deepened more than expected to $32.0 billion in July was helped improvement in the sentiments of market participants. President Obama has said that the health care reform shall be backed by health insurance plan of $900 billion over 10 years, which will be funded with spending cuts and tax increases. Crude oil futures for the month of October delivery gained by 0.8% at $71.91 a barrel on New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed higher by 80.26 points at 9,627.48. NASDAQ index gained 23.63 points at 2,084.02 and the S&P 500 (SPX) also inclined by 10.77 points to close at 1,044.14 points.
Today the major stock markets in Asia opened positive. Hang Seng is high by 140.99 points at 21,122.31. Further Japan''s Nikkei is low by 34.99 points at 10,478.68. Jakarta Composite is trading high by 9.96 points at 2,412.18.

Indian ADRs ended mixed on Thursday. In the banking space, ICICI Bank was up 1.06% and HDFC Bank was up 0.07%. In the IT space, Infosys was up 0.77% while Wipro was down 0.3%, Satyam Computers was down 2.22% and Patni Computers was down 3.59%. In the telecom space, Tata Communication was down 1.18% and MTNL was down 2.09%. In other sectors, Dr Reddy''s Labs was up 2.15%, Sterlite Industries was up 1.88% and Tata Motors was up 0.62%

The FIIs on Thursday stood as net buyers in equity and net sellers in debt. Gross equity purchased stood at Rs 3,101.40 Crore and gross debt purchased stood at Rs 375.00 Crore, while the gross equity sold stood at Rs 2,854.00 Crore and gross debt sold stood at Rs 1,135.20 Crore. Therefore, the net investment of equity and debt reported were Rs 247.40 Crore and Rs (760.10) Crore respectively.

On Thursday, Indian Rupee closed at 48.50/51 per dollar, 0.2% weaker than its previous close at 48.51/52. The local currency ended low due to demand for green back as gold importers are importing gold ahead of festive season.

On BSE, total number of shares traded were 51.75 Crore and total turnover stood at Rs 6,720.80 Crore. On NSE, total number of shares traded were 100.47 Crore and total turnover was Rs 19,599.45 Crore.

Top traded volumes on NSE Nifty – Unitech with total volume traded 49644870 shares, followed by Suzlon Energy with 35072131, Hindalco with 22259415 shares, DLF with 17374570 shares and Tata Steel with 11365036 shares.

On NSE Future and Options, total number of contracts traded in index futures was 739559 with a total turnover of Rs 16,992.46 Crore. Along with this total number of contracts traded in stock futures were 660527 with a total turnover of Rs 22,022.06 crore. Total numbers of contracts for index options were 1411201 with a total turnover of Rs 34,074.52 Crore and total numbers of contracts for stock options were 71907 and notional turnover was Rs 2,494.34 Crore.

Today, Nifty would have a support at 4,764 and resistance at 4,866 and BSE Sensex has support at 16,012 and resistance at 16,365

Grey Market - Oil India, Pipavav Shipyard

Company Name	Offer Price (Rs.)	Premium (Rs.)
Jindal Cotex	75	4.50 to 5.50
Globus Spirits Ltd.	100	5 to 6
Oil India	950 to 1050	40 to 42
Pipavav Shipyard	55 to 60	6 to 7

Market may extend last five days of gains on positive global cues

The key benchmark indices may extend last five days of gains on positive global stocks. Investors will keenly watch industrial output data for the month of July 2009 due today. The industrial output rose by a faster-than-expected 7.8% in June 2009 as against 5.4% in June 2008 and 2.2% in May 2009.

The weather office said on Thursday rainfall was 21 % above average in the week to 9 September 2009 continuing the upturn since mid-August but total seasonal rainfall was a fifth short of normal since the season began with the driest June in eight decades. More than two-thirds of the people live in villages and 60 % of the farm land depends on the annual rains.Higher rainfall in the past week has helped India's 81 biggest reservoirs fill up much faster than normal for this time of year. Reservoirs are important for hydropower, which accounts for a quarter of India's generation capacity. They also provide water to irrigate winter crops.

The wholesale price index (WPI) fell 0.12% in the year through 29 August 2009, lower than an annual decline of 0.21% in the previous week, data released by the government showed on Thursday. The food article index surged 14.8%.

Analysts are concerned that a sharp surge in food prices in the past few days due to scanty rains may stoke inflationary pressures in the economy. Interest rates could rise on higher inflation which in turn may impact a nascent economic recovery and corporate profits.

Meanwhile, foreign direct investment (FDI) flows into India in July 2009 were up 56 % from the same month in 2008. FDI flows into India were $3.5 billion in July, up from $2.25 billion a year earlier, Trade Minister Anand Sharma said on Thursday.

Asian stocks rose today after China reported strong industrial output data.The key benchmark indices in Hong Kong, South Korea, Singapore and Taiwan rose by between 0.22% to 0.93%.

China's Shanghai Composite rose 1.33%. China's industrial production grew at a faster pace in August, signaling a strengthening recovery in the world's third-biggest economy. Output gained 12.3 % from a year earlier, after climbing 10.8 % in July, the statistics bureau said in Beijing today

But, Japan's Nikkei fell 0.45%. Japan's economy unexpectedly grew less than initially estimated in the second quarter. Gross domestic product expanded at an annual 2.3 % pace in the three months ended 30 June 2009, slower than the 3.7 % reported as per preliminary estimate, the Cabinet Office said today in Tokyo.

The US markets touched fresh 2009 highs on Thursday, 10 September 2009 after jobless claims slid to the lowest level since July. The Dow added 80.26 points, or 0.8%, to 9,627.48. The S&P 500 index rose 10.77 points, or 1%, to 1,044.14. The Nasdaq Composite Index rose 23.63 points, or 1.2%, to 2,084.02.

From the economic data front initial claims for unemployment fell more than expected to 5,50,000 last week while continuing claims also dropped more than estimates to 6.09 million. Meanwhile, trade deficit expanded for the second straight month to a greater-than-expected $ 32 billion in July 2009.

Back home, the key benchmark indices registered small gains in choppy trade, extending a rally for the fifth day on Thursday. The BSE 30-share Sensex rose 33.31 points or 0.21% to 16,216.86, its highest closing since 30 May 2008 on that day.

The Sensex has jumped 818.53 points or 5.31% in five trading days to 16,216.86 on 10 September 2009 from a recent low of 15,398.33 on 3 September 2009 as a revival of monsoon rains, strong response to the initial public offer of Oil India and firm global stocks boosted sentiments.

Meanwhile, liquidity continues to support share prices and oversubscription to the Oil India initial public offering is a testimony to that. The Oil India IPO which opened for bidding on 7 September 2009, was subscribed 30.82 times. The issue was closed on 10 September 2009. The government has fixed Rs 950-1,050 per share price band for the initial public offering of Oil India (OIL), the second state-run firm to hit the market this year after NHPC, and will raise up to Rs 2,777 crore.

The strong response to Oil India IPO was despite a muted debut of another state-run firm NHPC on the secondary markets early this month.

Technical Levels - Sep 11 2009

COMPANY NAME	S3	S2	S1	CLOSING PRICE	R1	R2	R3
Sensex Index	16,040	16,083	16,128	16,217	16,305	16,351	16,394
Nifty Index	4,766	4,779	4,793	4,819	4,846	4,860	4,873
ABB Ltd	728	730	733	738	743	746	748
ACC	771	776	780	790	799	804	808
Ambuja Cements	97	97	98	99	100	100	101
Bajaj Holdings	481	483	485	489	493	495	497
BHEL	2,239	2,246	2,254	2,268	2,282	2,289	2,296
Bharti Airte	409	411	413	417	420	422	424
Cipla	258	260	262	265	268	270	272
Dabur India	128	128	129	130	131	132	132
GAIL India	323	330	337	350	364	371	378
Grasim Ind.	2,616	2,633	2,650	2,685	2,719	2,736	2,753
HCL Tech	304	305	307	309	312	313	315
HDFC Bank	1,469	1,473	1,477	1,486	1,494	1,498	1,502
Hero Honda	1,512	1,527	1,543	1,573	1,604	1,619	1,634
Hindalco	111	113	114	117	120	121	122
Hindustan Unilever	257	258	260	262	265	266	267
ICICI Bank	799	803	808	817	825	830	834
Infosys Tech	2,209	2,217	2,225	2,240	2,256	2,264	2,272
ITC Ltd	226	226	227	229	231	232	233
L&T	1,570	1,577	1,585	1,601	1,616	1,624	1,632
MTNL	91	91	92	93	94	95	95
M&M	796	802	809	822	835	842	848
Maruti Suzuki	1,446	1,457	1,468	1,489	1,511	1,522	1,532
Mahindra Satyam	118	119	119	121	123	123	124
National Alumin	320	324	328	337	345	349	353
ONGC	1,164	1,168	1,172	1,181	1,189	1,193	1,197
Oriental Bank	208	210	212	216	220	222	224
PNB	677	681	687	696	706	711	716
Ranbaxy Labs	320	321	322	325	328	329	330
Reliance Capital	882	888	895	909	922	929	935
Reliance Comm	297	299	300	303	306	308	310
Reliance Energy	1,139	1,148	1,157	1,174	1,191	1,201	1,209
Reliance Inds	2,077	2,094	2,112	2,147	2,183	2,201	2,218
R Power	162	163	164	165	166	167	167
Siemens India	511	515	519	526	534	538	542
SBI	1,843	1,853	1,862	1,882	1,901	1,911	1,920
TCS	545	548	551	557	562	565	568
Tata Motors	549	552	556	563	569	573	576
Tata Power	1,263	1,269	1,274	1,285	1,296	1,302	1,307
Tata Steel	461	463	465	470	474	477	479
Tata comm	469	472	475	480	485	488	490
Wipro	535	537	539	544	548	550	552
Wire And Wireless	19	19	19	20	20	20	20
Zee Entertainment	202	204	206	210	214	216	218

SGX Nifty continues to ride high

4,842.0 +37.5

Copper continues to tarnish

Prices drop as LME inventories stack up

Copper prices continued to fall on Thursday, 10 September, 2009 at Comex and LME. Prices fell as traders anticipated that supply will oust demand thus year.

At USA, copper futures for December delivery fell 5.75 cents (2%) to 2.8665 a pound. Copper fell 2.8% last week. Copper ended August, 2009, higher by 7%.

On the London Metal Exchange, copper for delivery in three months ended lower by $130 (2%) at $6,286 a metric ton. On 3 July, 2008, prices had touched an all time intra day high of $8,940.

After August, it was the eighth straight monthly gain for copper. Prices gained 23% in the second quarter. On a year to date basis, prices are higher by 91%.

The U.S. buys about 13% of the 17 million metric tons of copper sold annually and China buys about 20%.

Inventories of copper monitored by LME rose for a 10th day, gaining 0.2% to 317,575 tons, the highest since May.

In the currency market today, the dollar index, which measures the strength of dollar against a basket of other currencies, fell by 0.4%.

In its latest report, Goldman Sachs reported that it has forecast copper to reach $7,650 a ton at the end of 2010.

In FY 2008, copper prices dropped by 54%. Prior to 2008, copper prices ended FY 2007 with a gain of mere 5.5% after a whopping 44% gain in FY 2006. The price of copper gained every year since 2002 as global economic growth boosted demand for the metal used in pipes and wires.

At the MCX, copper for November delivery closed at Rs 308.5/Kg. The closing price was Rs 3.95/Kg (1.3%) lower than previous closing price. Prices rose to a high of Rs 315.85/ Kg and fell to a low of Rs 304.5/Kg during the day's trading.

Among other metals traded in the LME on Thursday, lead fell 12% to $2,115 a ton and zinc fell 3.1% to end at $1,910 a ton. Nickel fell 3.6% to end at $17,300. Aluminium fell 1.8% at $1,855 a ton.

Crude continues with its upward journey

Prices rise as inventories drop less than expected

Crude prices ended higher once again on Thursday, 10 September, 2009. Prices ended higher as energy department reported more than expected drop in crude inventories for last week. The report came in a day later than scheduled due to the Labor Day holiday on Monday. Meanwhile, a weaker dollar also pushed oil higher.

On Thursday, crude-oil futures for light sweet crude for October delivery closed at $71.94/barrel (higher by $0.63 or 0.9%). Crude has added 6% in past four sessions. Last week, crude ended lower by 6.5%. It was the biggest weekly loss for crude in two months.

For the month of August, 2009, crude ended higher by a marginal 0.7%. For the second quarter, crude ended higher by 40%. Crude prices had rallied 11.3% in the first quarter of 2009.

Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 50.4% since then. Year to date, in 2009, crude prices are higher by 51.3%.

EIA reported today that crude inventories fell 5.9 million barrels in the week ended 4 September, 2009. Traders are anticipating that report will show that crude supplies dropped 1.8 million barrels for the week ended 4 September, 2009.

The report also detailed that Gasoline inventories rose 2.1 million barrels, and distillate stockpiles, which include heating oil and diesel, rose 2 million barrels. Traders predicted a drop of 1.5 million barrels in gasoline inventories and an increase of 1.1 million barrels in distillates, which include heating oil and diesel.

The IEA raised its demand forecasts for both 2009 and 2010 by nearly 500,000 barrels a day. On the other hand, the Organization of Petroleum Exporting Countries kept its production quota unchanged.

In the currency market today, the dollar index, which measures the strength of dollar against a basket of other currencies, fell by 0.4%.

Also at the Nymex on Thursday, October reformulated gasoline fell 2.45 cents, or 1.3%, to $1.8036 a gallon and October heating oil edged slightly lower to $1.7885 a gallon.

October natural gas ended up 42.7 cents at $3.256 per million British thermal units. The 15% percentage gain is the biggest since May 2008. EIA also reported today that U.S. natural gas inventories rose 69 billion cubic feet in the week ended 4 September, 2009. At 3,392 billion cubic feet, stocks were 495 billion cubic feet higher than last year at this time and 503 billion cubic feet above the five-year average.

Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.

At the MCX, crude oil for September delivery closed higher by Rs 1 (0.02%) at Rs 3,486/barrel. Natural gas for September delivery closed higher by Rs 8.9 (6.3%) at Rs 149.3/mmbtu.

Daily News Roundup - Sep 11 2009

NTPC to save Rs320bn by procuring gas at US$2.34/mmbtu from Reliance Industries. (ET)

Reliance Industries seeks further allocation of KG-D6 gas. (BL)

Infosys targets US$1bn revenue from India in the next 3-4 years. (ET)

Government may shed 5% stake in NTPC before March. (ET)

Bharati Airtel may pay higher rate of interest for MTN loans. (ET)

L&T bags Rs4bn order from Nuclear Power Corporation. (BL)

L&T aims Rs40-60bn business from Nuclear Power equipments. (BS)

Oil India IPO was over subscribed 31 times. (ET)

Jet Airways and its pilots have reached a pact to break the deadlock. (ET)

M&M has launched two new 125cc power scooters The Rodeo and The Duro. (ET)

Jindal Power to invest Rs134bn for enhancing its power generation capacity to 3,400 MW by 2013. (ET)

JSW Energy plans to pre pay debt worth Rs4.75bn. (BL)

BHEL gets Rs9.9bn order from Indian Railways. (ET)

BPCL to spend around Rs30bn in the current fiscal to fund drilling operations in some exploration blocks, upgrade refineries and build a product pipeline. (FE)

IVRCL Infra has bagged order worth Rs5bn from Maharashtra Government, among others. (BL)

Ranbaxy asks USFDA to re-inspect Dewas facilities. (ET)

IT department raids 12 HDIL premises. (ET)

United Spirits plans to raise US$300mn to prune debt. (BL)

Axis Bank gets nod for GDR issue. (BS)

Ansal Properties may consider converting 3 out of 4 SEZ plots into a residential project. (BS)

IDFC PE to buy out wind power assets of BP for Rs6.5bn in India. (ET)

Murugappah to exit Chola DBS. (ET)


Inflation for the week ended August 29, inched up to -0.12%. (ET)

DGCA has asked airlines to drop fares to September 6 levels. (ET)

Petroleum ministry has recommended a 44% hike in APM gas prices. (FE)

Foreign exchange reserves for the week ended 28 August rose by US$4.4bn to US$276.4bn. (FE)

India’s exports contracted for 11th month in a row. August exports fell 19.7% to US$14.3bn, the lowest contraction since January. (ET)

GSM user base grows by 9.3mn in August. (ET)

SEBI panel has recommended limiting the period for participation by QIBs to 2-3 days in subscription process of an IPO. (ET)

FDI inflows up 55% in July to US$3.5bn. (ET)

Centre to import 5mn tons of raw sugar. (ET)

Power sector faces Rs5tn funding gap says Power Minister. (BL)

SEBI may ask institutional investors to cough up more than 10% of a public issue subscription upfront. (FE)

Tyre manufacturers are likely to raise tyre prices within a month. (BL)

ULIPs to have five year lock in period from October. (BS)